Startup life – Expectations vs Reality
Startups are challenging and equally rewarding when handled right and this is what most entrepreneurs find hard to balance. When focusing on a startup, the idea is to always have your expectations in line with what the reality is but unfortunately this is not always the case. Entrepreneurs hold varied expectations but are then faced with the reality which derails what their overall goal is based on. Here are the expectations vs reality that entrepreneurs face with startups and you can find more on the topic at bitgale.com.
Expectations
Your new idea will appeal
Startup life is filled with enthusiasts and the expectation is always that your new idea will appeal to the target audience. Creative ideas are always a welcome change to the target audience and this is what makes people have the expectation that any idea will automatically appeal.
Taking in an investor is a good idea
At the startup phase, taking in an investor always ends up stressing the business since the interests of the investor have to be taken into consideration at every step. Entrepreneurs expect that an investor will get them over the threshold which explains why most people with startups always target financing from investors. Investors not only serve to reduce the equity an entrepreneur holds but it also cripples the business in the long run.
Startups are easy to manage
It is actually harder to start a business than run a multi-million corporation since you are setting the infrastructure right from scratch. Entrepreneurs are always of the idea that startups are easy to manage due to the foundational elements and the systemic progress.
Seamless fundraising translates to success
Many Kickstarter projects and startups have failed while others have gone to achieve phenomenal success. The secret is in identifying the value proposition and streamlining its management to ensure that every problem solved brings in the revenue to propel the business. Entrepreneurs however hold the expectation that seamless fundraising will translate to success in the operating field.
You will automatically have market share
The big players are always greedy with the shelf space they own and they are not going to simply roll over and let you have it. You have to command the shelf space and kick out an established brand and this means you have to work extra hard to achieve that. Startup life expectations are however tuned on the premise that you will ultimately get market share with your new product or service.
Social media will make you trend
It may achieve that goal initially but the fact remains that without a product or service that the target market finds valuable and worthy, you are doomed to fail. The expectation of startups is that social media campaigns will make the business trendy.
Pumping in the funds translates to success
Throwing money at your problems and challenges doesn’t make them easier to manage, it may actually scale them to greater issues that may be harder to manage. An expectation placed when commencing a startup is that pumping in the funds will make success come faster.
Investors will be your buddies
Investors only understand one language and that is increasing revenue and maximizing money making avenues. They will not understand any business decisions that don’t result in the business making money and they will definitely not be your buddies.
You will be a one-person show
Even at startup, you need to have a structure in place for when the business explodes. Being a one-person show does not cut it since you will eventually run yourself into the ground. Furthermore, it becomes harder to manage growth and scale effectively if you are running everything alone.
Reality
Startups work when you do your homework
All entrepreneurs must understand that a startup will only achieve its target as and when you do your homework which will align your capacity to achieve with your objectives.
Not every startup is tuned for success
During the startup phase, you have to identify that not every business is tuned for success and that the reality remains that many will fail and will never reach the desired heights.
You have to believe in your bottom line
The ultimate goal you have for the startup has to be your bread and butter. The reality of startup life is that you have to believe in what you are offering if you are to make progress and achieve your objectives.
Every mistake is punished
With startup life, every mistake you make as an entrepreneur is punished dearly since the business world is cutthroat.
Risk-reward assessment is key
Not all risks are worth taking even at the startup stage. the reality for startups is that you have to weigh in all the risks and the expected reward and identify whether it will be worth your while in the end.
It will get worse before it gets better
The reality is that with startups, it always gets worse before it gets better and this is a fact that has to be internalized if the business is to stand the test of time.
You have to solve a problem
There has to be a real need you are addressing if your startup is to see the light of day and achieve the growth needed to become a powerhouse within a select niche or industry.
Astute decision-making will be the difference
Every startup will require an entrepreneur that is able to make bold decisions that are tuned to aid the business scale to greater heights
Realistic objectives and goals are the key
Just because you are startup doesn’t mean you are entitled to ride the wave and just float through the business world, you have to have realistic objectives and goals to make it through.
Effective partnerships are what will grow the business
Whether it is a business that complements the operations or takes over some aspect of the overall operations, it is important to target partnerships with other businesses that will allow your startup to have some room for development.